MD_DA440

     Butter - Western U.S.

     Report 19 - Released on May 12, 2021

     In the West, cream is in steady, albeit gradually constricting, supply. Ice cream makers are
     absorbing ample volumes of cream. Some industry contacts say that, facing both high year-
     over-year and seasonal demand, ice cream makers cannot make enough ice cream. Some butter
     manufacturers report selling off a few spot loads of cream and running decreased butter
     production schedules. Other manufacturers, particularly in the Southwest, are maintaining
     seasonally active production and trying to stash extra butter in the coolers now for later
     this year, when cream may be harder to come by. Overall, though, inventories throughout the
     region are stable. Retail demand is steady to lower. Food service orders are trending strong
     but level, although there is some variation at the state and even county level. Butter
     sellers note increases in their food service partners placing either smaller and more
     frequent just-in-time replenishment orders or placing, and working through, larger and less
     frequent orders. Accurately forecasting demand remains a challenge for dairy manufacturers
     and food service customers both.
     Prices for: Western U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter

     Bulk Basis Pricing  - 80% Butterfat $/LB:              +0.0100 - +0.0750


     Information for the period May 10 - 14, 2021, issued weekly

     Secondary Sourced Information:

     CME CLOSING PRICE
     The Grade AA butter price at the CME Group on Wednesday closed at $1.8500, compared to the
     weekly average price of $1.7500 from last week.

     EXPORT ASSISTANCE
     This week, a cooperative export assistance program accepted requests for export assistance
     to sell 524,700 pounds (238 metric tons) of butter. So far this year, the program has
     assisted member cooperatives who have contracts to sell 10.4 million pounds of butter (82%
     milkfat) and 7.1 million pounds of AMF in export markets. When combined with other dairy
     products, the program has assisted members with sales of 722.3 million pounds of milk on a
     milkfat basis.

     Published by:
     Dairy Market News - Madison, WI
     CHELSEA ROCHELLE, 608-422-8594
     Email: Chelsea.Rochelle@usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: https://www.ams.usda.gov/market-news/dairy
     DMN MARS (My Market News): https://mymarketnews.ams.usda.gov